Gold rises more than 1% ahead of US economic data

Gold was trading near local highs at the time of publication, supported by a weaker dollar and falling US Treasury yields. Both factors lifted the metal, which typically benefits when investors retreat from risk.

Investors are watching upcoming US economic reports, including inflation and consumer spending data. These releases could shape expectations for the Fed’s next move. Analysts interviewed by Reuters say the results could trigger volatility in currency and commodity markets, particularly if they exceed forecasts.

Long-term US Treasury yields eased ahead of the data, adding support for gold. After several weeks of rising yields, the pullback has improved gold’s appeal as an alternative asset. The US dollar also weakened slightly against a basket of currencies, creating favorable conditions for further gains.

Caution is visible across other markets as well. Risk assets, including equities and commodities, posted mixed results. Growing concerns about the global economy and tight liquidity have boosted demand for gold as a haven.

Analysts note that gold will continue to track macroeconomic developments. Stronger US inflation readings or reduced expectations for a Fed rate cut could slow the rally. Weaker data, however, may fuel additional demand for safe-haven assets, including gold.

Market participants are also monitoring geopolitical risks, which continue to support interest in the metal. Recent episodes of regional instability have reinforced gold’s role as a store of value.